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2014 (7) TMI 589 - AT - Income TaxPenalty u/s 271(1)(c) of the Act – Liability to deduct TDS u/s 194J of the Act - Held that:- There is no dispute about the fact that TDS was not deducted on MICR charges - in earlier years also assessee was not deducting TDS on these charges and no penal action was initiated by the AO - it can be said that assessee was under bonafide belief that on payment of MICR charges no TDS was to be deducted by it – The decision in Canara Bank Vs. ITO [2008 (2) TMI 515 - ITAT AHMEDABAD-B ] followed - assessee was required to deduct TDS on MICR charges assessee has been regularly deducting tax on payment - assessee was prevented by reasonable cause in not deducting TDS on the payment of MICR charges - the penalty imposed is set aside – Decided in favour of Assessee.
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